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Foreclosure

How Homeowners Can Protect Themselves

When homeowners are contacted about foreclosure options by a third party, homeowners should:

  • Contact their lender. They may be able to work a re-payment plan (forbearance agreement) that is within a homeowners budget;
  • Seek legal advice through a trusted attorney, not one appointed by the company or individual soliciting them.
  • Never sign away ownership of the home by a quitclaim deed or otherwise without consulting a trusted attorney;
  • Be especially suspicious of offers to lease back the home, in order to buy it back over time. These offers may sound good but often make it impossible to re-purchase the home;
  • Never make mortgage payments to anyone other than the lender;
  • Never listen to anyone other than the lender regarding the mortgage payments or due dates;
  • Beware of any home-sales contract in which the homeowner is not formally released from liability for their mortgage;
  • Do not sign any document with bank lines or spaces; information could be added later without your knowledge and consent.
  • Call the New Jersey Office of the Attorney General , Division of Consumer Affairs, and Office of Consumer Protection at 1-800 242-5846 (calls within New Jersey) email: AskConsumerAffairs@lps.state.nj.us.
  • Call the Department of Banking and Insurance toll-free hot line (1-800-446-7467) for guidance, direction and schedules or locations of foreclosure seminars.
  • For brochures on Foreclosure Scams visit www.njconsumeraffairs.gov/brief/foreclosure.pdf  and www.njconsumeraffairs.gov/brief/surplus.pdf 

Is Foreclosure Mediation Right for You?

Foreclosure mediation provides homeowners who are dealiing with the threat of foreclosure to receive help from housing counselors, attorneys, and a neutral mediator to resolve their loan delinquency matters. The program is free for qualified homeowners.

Visit www.NJForeclosureMediation.org  for more information or call toll free at 1-888-9989-5277.